Google CEO will stay on Apple board

Eric Schmidt, the CEO of Google (GOOG) has no intention of stepping down from the Apple (AAPL) board, even though the government has expressed concerns about a conflict of interest.

Schmidt's decision makes sense. The two companies compete in the browser and wireless operating system business. It is hard to see how Schmidt's presence on the board at Apple would make that competition any less fierce.

According to The Wall Street Journal, Schmidt said, "I don't think Google sees Apple as a primary competitor." He is right, which means the government is wasting its time.